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Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget Sales (14,000 units $203 per unit) 2,842,000 Costs Direct materials 350,000 Direct

Tempo Company's fixed budget (based on sales of 14,000 units) folllows. Fixed Budget Sales (14,000 units $203 per unit) 2,842,000 Costs Direct materials 350,000 Direct labor 588,000 Indirect materials 364,000 Supervisor salary 150,000 Sales commissions 98,000 Shipping 224,000 Administrative salaries 200,000 DepreciationOffice equipment 170,000 Insurance 140,000 Office rent 150,000 Income 408,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units.

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